Manufacturers Face Mounting Tariff Costs as Distributors Push Through Price Increases Into 2026
Automation World’s Endeavor Business Media partner publication IndustryWeek reports that manufacturing companies are experiencing persistent inflation pressures driven by tariffs that are expected to continue into 2026.
Industrial distributors like MSC Industrial Direct and W.W. Grainger have been implementing multiple rounds of price increases in response to supplier cost pass-throughs, with some companies caught off guard by the scale and speed of these increases.
The Trump administration's tariffs, including Section 232 tariffs, have created a compounding effect on costs, according to IndustryWeek. For example, Regal Rexnord's estimated 2025 tariff impact has escalated from $60 million in March to $175 million by October. Companies initially stockpiled inventory to avoid tariff costs, but as these supplies deplete and margins shrink, they're being forced to pass costs to customers.
See more of IndustryWeek’s insights on the impact of tariffs on manufacturing equipment.
